The Association of the German Furniture Industry and the North Rhine-Westphalia Wood and Furniture Industry Associations are jointly satisfied with the business figures of the German furniture industry for the past fiscal year. After positive figures in the autumn business, the past year was concluded with overall economic stability. In particular, the kitchen furniture industry and foreign business are boosting sales in the German furniture industry. Largely positive order entries in the fourth quarter of 2019 suggest a moderate to good sales trend at the beginning of 2020. The potential effects of external risks are currently difficult to assess.

“Even though sales last year fell slightly by 0.5 percent to 17.9 billion euros overall, consolidation was achieved at a high level despite another hot summer. Within the industry, differences became apparent: foreign sales were better than domestic sales, the second half of the year better than the first and kitchen and office better than home furniture,” confirms Jan Kurth, Managing Director of the German Furniture Industry Association and the Herford-based furniture associations.

In December 2019, the German furniture industry as a whole was able to increase its sales by 2.2 percent, thus almost compensating for the declines accumulated so far, especially in August and November. The decline in sales for the year as a whole of just 0.5 percent is largely due to the German market. German manufacturers face several competitive situations here: “On the one hand, imported goods are pushing into the market primarily in the lower to medium price segment. On the consumer side, our products are in a pitch with attractive alternatives – such as e-bikes, travel, sports and leisure”, says Kurth.

Conversely, the analysis of the furniture associations shows that furniture ‘Made in Germany’ is increasingly in demand on foreign markets due to specific product features, design language and service offerings. This applies not only to neighbouring countries, but also to more distant markets such as the USA. However, the EU markets remain the most important sales area outside Germany – with the Benelux countries, France and the EFTA states at the top of the list.

For the current year 2020, Managing Director Jan Kurth expects the market to remain stable overall, but with the still unforeseeable effects of the coronavirus on the economy as a whole and on production processes there are many imponderables. “The demand for furniture in the Asian export market, which is currently growing strongly for us, could be affected just as much as the supply of the domestic market with vendor parts – with negative effects on the entire manufacturing industry,” says Jan Kurth.